TOKYO: Bank of Japan Governor Haruhiko Kuroda said on Thursday the central bank would "respond appropriately as needed" to various risks to the economic outlook, such as the rising tide of protectionism and the impact of next year's sales tax hike.

"Risks to Japan's economy are tilted toward the downside. We need to pay particular attention to protectionist moves such as the Sino-U.S. trade friction," Kuroda told parliament.

Kuroda added that he did not believe the BOJ's monetary easing was reaching a limit.